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AMP Capital has announced a series of updates to its ethical investment funds including a new fund name – AMP Capital Ethical Leaders – enhanced investment screens and the launch of an industry-first youth advisory committee.
Previously known as the AMP Capital Responsible Investments Leaders funds, the change to AMP Capital Ethical Leaders reflects the fund’s increasing focus on ethical investment considerations and the growing demand from investors for ethical investment options.
AMP Capital Ethical Leaders Portfolio Manager, Kristen Le Mesurier commented: “The updates we’ve announced today are reflective of the increasing number of investors that care about what they’re invested in, which industries they’re supporting, and the impact – positive or negative – these investments have on the world.
“The change to Ethical Leaders better reflects the fund’s long-standing focus on providing transparency and ethically minded investments clients are looking for. We firmly believe in the importance of transparency, which is why we have a well-established investment approach that invests ethically across all asset classes, not just equities, and discloses every investment held to the public,” she said.
“Our clients across New Zealand increasingly want to match their values to their investments. Being transparent on what our ethical funds are invested in and the work we’re doing to effect change is crucial in supporting our clients to achieve this objective.” - Rebekah Swan, AMP Capital New Zealand Head of Product and ESG Investment Specialist
Rebekah Swan, AMP Capital New Zealand Head of Product and ESG Investment Specialist commented: “Our clients across New Zealand increasingly want to match their values to their investments. Being transparent on what our ethical funds are invested in and the work we’re doing to effect change is crucial in supporting our clients to achieve this objective.”
As part of the updates, the AMP Capital Ethical Leaders fund has enhanced its fossil fuels investment screen, reducing the revenue companies can make from a number of fossil fuels including mining thermal coal and brown coal power generation from 20 per cent to 10 per cent. The fund continues to exclude all companies that make a material amount of money from the most carbon-intensive fossil fuels.
Kristen Le Mesurier added: “Our revised fossil fuels investment screen is the result of extensive research on how we can best support our clients’ objective to support action on climate change while investing in companies that are supporting a transition to a renewable economy.”
Understanding the values and opinions of clients on a range of environmental and social issues is an important step in determining the ethical screens that guide investment decisions in the fund.
Rebekah Swan added: “The opportunity for representatives from New Zealand to be involved in the new youth advisory committee, which we believe is the first of its type in the industry, will add a local perspective to societal, environmental, sustainable and ethical issues.”
AMP Capital is the largest responsible investment manager in Australia and New Zealand with more than NZ$260 million and A$2.8 billion in funds invested across seven ethical and ESG strategies in the region, as at 1 July 2019. AMP Capital’s ESG team is recognised as a leader in the sector, with teams in Sydney, Wellington, Hong Kong and London supporting clients around the world.
About AMP Capital Ethical Leaders
AMP Capital Ethical Leaders are ethical investment funds that AMP Capital has been running on behalf of clients for more than 15 years (previously known as Responsible Investment Leaders). The funds provide an option for investors to make more conscious investments in society and the environment. It is often known as a Sustainable Responsible Investment (SRI) option in the superannuation industry. For more information visit www.ampcapital.com/nz/ethical.
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This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.